In 2017, Laquen Company had net sales of $900,000 and cost of goods sold of $522,000. Operating expenses were $225,000, and interest expense was $11,000. Laquen prepares a multiple-step income statement.

Instructions(a) Compute Laquen’s gross profit.(b) Compute the gross profit rate. Why is this rate computed by financial statement users?(c) What is Laquen’s income from operations and net income?(d) If Laquen prepared a single-step income statement, what amount would it report for net income?(e) In what section of its classified balance sheet should Laquen report inventory?